Quote:
Originally Posted by daepp
I am always surprised that the inflation that was supposed to result from such government profligate spending/printing hasn't materialized.
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Not an economist here. Most of it went into the bank accounts of the 1% and never reached street level I would imagine. It's just electronic digits sitting in a computer that represent the growing disparity between the classes and the centralizing of power and influence in the hands of a few just like in the other 20's. The James Bond film Spectre was a documentary btw.
Wages have been stagnant for decades and the consumer price index has to stay low enough to make those goods saleable here. We are good consumers of everything we don't need and always willing to go into debt for life. Thus the cheapening of products and rise of overseas manufacturing to maintain high levels of sales. A few products have slipped the net though such as housing and pickup trucks. The standard banking solution is to allow more consumer debt for whatever the consumer wants, and later get reimbursed by the government.
There are some things I still don't understand about economics though: How massive spending at the street level creates more jobs more consumers and more demand and thus inflation, while a lack of spending during the great depression did the same thing. The ends of the chart wrap around and meet.